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Tinka Resources Ltd. is a junior exploration company based in Vancouver, Canada, that is developing its 100%-owned Ayawilca Zinc Property in the richly mineralized silver-lead-zinc belt of Central Peru. The focus of the company is aimed at expanding and further defining the existing Zinc Zone mineral resource through an aggressive drilling campaign.
The flagship Ayawilca Property is located 200 km northeast of Lima in the Department of Pasco, at altitudes of between 3,800 and 4,300 metres in the central Peruvian Andes. The Property is 40 km northwest of the Cerro de Pasco zinc-lead-silver mine, and 100 km south of the giant copper-zinc Antamina mine. Ayawilca consists of three separate mineral resource zones, based on drilling up to the end of 2015: the Zinc Zone, the Tin Zone, and the Silver Zone.
The Zinc Zone has an Inferred Mineral Resource (May 25 2016) of 18.8 million tonnes at 8.2 % Zinc Equivalent, containing 2.4 billion pounds of zinc, 1,385 tonnes of indium, 8.8 million ounces of silver, and 82 million pounds of lead. Mineralization is open in most directions. The Tin Zone has an Inferred Mineral Resource (May 25 2016) estimation of 5.4 million tonnes at 0.89 % Tin Equivalent, containing 90 million pounds of tin, 37 million pounds of copper, and 3.1 million ounces of silver. Mineralization also remains open in most directions.
The Silver Zone at Colquipucro has a Mineral Resource (February 26 2015) of 7.4 Mt at 60 g/t silver for 14.3 Moz silver (Indicated) and 8.5 Mt at 48 g/t silver for 13.2 Moz silver (Inferred) in a preliminary open pit shell with a low strip ratio. Colquipucro is located 2 km north of the Ayawilca Zinc zone, with mineralization occurring from surface to a depth of 80 metres. Silver mineralization is oxidized, and remains open to the northeast.
Management believes it can significantly expand the zinc resource at Ayawilca, which combined with solid metallurgical test work, probably indicates an economic underground mining project according to my back of the envelope estimates. Tinka worked with the Peruvian authorities for 18 months to secure a much larger exploration permit, which would enable much more drilling, and this permit is expected to be granted in February 2017.
The company has raised no less then C$11M in November 2016 in anticipation of this and on the back of a looming zinc shortage, more than enough to fund activities throughout 2017. A likely drill program will run from February to August 2017, a resource update is expected in Q3 2017, met work will be completed in the meantime, and depending on exploration results (deposit already enough size and economics good enough), and a PEA will be completed in Q4, 2017.
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